07:38 AM ET 02/27/2020
Dow Jones futures fell sharply Thursday morning, along with S&P 500 futures and Nasdaq futures. The CDC said there is a U.S. coronavirus of possible unknown origin, raising fears that the virus is beginning to spread in America. That came after President Donald Trump spoke on the coronavirus crisis. Microsoft (MSFT) warned it'll miss sales targets due to the coronavirus, following warnings from Apple (AAPL) and Mastercard (MA).....MORE
Microsoft stock retreated retreated Thursday, along with Apple stock, Mastercard stock and other big-cap leaders such as Tesla (TSLA), Advanced Micro Devices (AMD) and Amazon.com (AMZN).
Earlier, Wednesday's stock market rally attempt fizzled as the Covid-19 virus continued to spread around the globe.
Meanwhile, Carvana (CVNA), Square (SQ), Teladoc Health (TDOC) and Etsy (ETSY) were notable earnings reports after the close. Gilead Sciences (GILD) announced trials for its antiviral Remdesivir to treat the coronavirus.
Carvana stock and Ansys stock tumbled. Square stock, Etsy stock, Teladoc stock also jumped. So did Gilead stock.
Stock Market On Coronavirus Quarantine
MSFT stock has been holding up relatively well in the coronavirus stock market correction, closing Wednesday above its 50-day line. MSFT stock is still worth watching. Investors should be looking for quality stocks with strong relative strength lines, signaling outperformance vs. the S&P 500 index. But, as the Microsoft warning underscores, this isn't a good time to be buying. Until coronavirus fears fade and a new market rally takes hold, consider stocks to be in quarantine.
Microsoft, Mastercard and AMD stocks are on the IBD 50 list of top-rated stocks. Mastercard and Microsoft stock are Long-Term Leaders. Apple, Tesla, AMD and Mastercard are all on IBD Leaderboard.
Dow Jones Futures Today
Dow Jones futures fell 1.4% vs. fair value. S&P 500 futures sank 1.4%. Nasdaq 100 futures retreated 1.7%. Microsoft stock is a Dow Jones, S&P 500 and Nasdaq component. Apple stock, also a triple-index name, pulled back as well. So Mastercard, Amazon, Tesla and many other big caps did too.
Dow Jones futures have been volatile for the past few days, which is common during stock market corrections.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session. Dow Jones futures pointed to gains on Tuesday and Wednesday, but after opening higher, the Dow closed lower.
Coronavirus News....
DJIA futures off 368; S&P, -40.75
